The Motivation And Financial Performance Of STO Back Door Listing

In recent years,the rapid development of e-commerce has ushered in a booming development opportunity in China's express delivery industry.The express delivery companies headed by state-owned express delivery companies such as China Post and international express giants such as DHL and UPS are no longer the backbone of the industry.The private express delivery enterprises headed by SF and “Sitong Yida”quickly emerged and occupied most of the market share.However,as competitors increase and the expansion speed is too fast,some problems are inevitable within the industry.For example,the industry's profit is reduced,service quality is declining,etc.The transformation and upgrading of various express delivery companies is imminent.In order to open up new financing channels to provide more financial support for its own transformation and upgrading,in 2016,Shentong Express,SF Express,Yuantong Express and Yunda Express have landed in the capital market through backdoors.In view of the current level of activity of private express delivery companies in the domestic market and the upsurge of listing on the backdoor,the author believes that this kind of merger and acquisition model of the express delivery industry has certain research value.As the leader in the domestic express delivery industry,Shentong Express is the first company to make a viable backdoor listing program.It has a certain representativeness within the industry and is worthy of analysis and research.Therefore,this paper chooses the case of STO Express' s backdoor listing,and analyzes the process and motivation of Shentong Express' s backdoor listing.It uses financial indicators to analyze its financial performance before and after listing.The aim is to provide reference suggestions for Shentong Express and other listed companies to further improve their financial performance,and to provide certain decision support for other companies that want to choose a backdoor listing.The conclusions of this paper are as follows: In terms of the motivation of backdoor listing,the motivation of Shentong Express' s backdoor listing has the representativeness and universality of the express delivery industry.These are also themotivations for other companies in the industry to list on the backdoor,including five aspects:(1)Enhance corporate profits and enhance the competitiveness of the industry;(2)Overcoming the shortcomings of the franchise model and improving service quality;(3)Broadening financing channels and easing financial pressure;(4)Given the strict IPO audit,backdoor saves time costs;(5)Obtaining advertising effects,Improve your visibility.In terms of financial performance,the impact of backdoor listing on the financial performance of Shentong Express is very significant.In addition to the expansion of capital and scale,resulting in a decline in operational capacity.Shentong Express has improved in terms of solvency,profitability and development capability.The three express delivery companies listed on the backdoor have also reached the same conclusion in terms of financial performance.In general,backdoor listings have a financial positive effect on backdoor companies.Shentong Express has achieved certain results in this backdoor listing,which indicates that for the express delivery industry,backdoor listing is indeed an effective financing method.